The Conference Board Consumer Confidence Index, which had declined marginally in June, improved in July. The Index now stands at 121.1, up from 117.3 in June. The Present Situation Index increased from 143.9 to 147.8, while the Expectations Index rose from 99.6 last month to 103.3.
“Consumer confidence increased in July following a marginal decline in June,” said Lynn Franco, director of economic indicators at The Conference Board. “Consumers’ assessment of current conditions remained at a 16-year high and their expectations for the short-term outlook improved somewhat after cooling last month. Overall, consumers foresee the current economic expansion continuing well into the second half of this year.”
Consumers’ assessment of current conditions improved in July. Those saying business conditions are “good” increased from 30.6% to 33.3%, while those saying business conditions are “bad” was virtually unchanged at 13.5%. Consumers’ appraisal of the labor market was also more favorable. Those stating jobs are “plentiful” rose from 32% to 34.1%, while those claiming jobs are “hard to get” decreased slightly from 18.4% to 18%.
Consumers were also more optimistic about the short-term outlook in July. The percentage of consumers expecting business conditions to improve over the next six months increased from 20.1% to 22.9%, while those expecting business conditions to worsen declined from 10% to 8.2%.
Consumers’ outlook for the labor market improved. The proportion expecting more jobs in the months ahead was unchanged at 19.2%, but those anticipating fewer jobs decreased from 14.6% to 13.3%. Consumers, however, were not as upbeat about their income prospects as in June. The percentage of consumers expecting an improvement in their income declined moderately from 20.9% to 20%, while the proportion expecting a decline increased from 9.3% to 10%.
The monthly Consumer Confidence survey, based on a probability-design random sample, is conducted for The Conference Board by Nielsen. The cutoff date for the preliminary results was July 14.
